Samsung's patent filings in the U.S. and South Korea hint that the company is working to develop electric vehicles (EV), a move that is not good news for market leader Tesla.
American car maker, Tesla, is one of the few auto makers that manufacture fully electric cars. The company has gained widespread popularity for making the Tesla Roadster, the first fully electric sports car, followed by the Model S, a fully electric luxury sedan. The company is also planning to launch another premium car, the Model X, in 2014 and a sub-$40,000 electric car, dubbed the Model E, in 2015.
However, it now has a new competition.
The Wall Street Journal reports that Samsung's patent filing in both the countries cover parts and technology that may be used in EVs.
The patent applications published by the U.S. Patent and Trademark Office (UPSTO) and Korea Intellectual Property Rights Information Service suggest that Samsung is looking to cover technology patents for motors, tiers, as well as on-board electronics for information sharing between the driver and the car.
"Hybrid vehicles and electric vehicles have gained more popularity due to harmful environmental effects from air pollution and an increasing shortage of fossil fuels," said Samsung in one of the patent filings.
Samsung is no stranger to the automobile industry. The conglomerate holds minority stake in Renault Samsung Motors, which recently began producing SM3 electric vehicles. However, Samsung said it has no plans to enter the EV industry in the near future.
Samsung produces an array of electronics and household appliances. The company is very prominent in the smartphone and tablet arena and with the latest Galaxy Gear, launched at the IFA in September this year; the company has also entered the smartwatch space.
"Should the world enter an era of electric vehicles, the borderlines between auto makers and electronics companies will be blurred," said Jae H. Lee, an analyst with Daiwa Securities.
Lee also said that when EVs are more commonly used, the industry appear more attractive to Samsung, which may then want to take a plunge.
Samsung's interest in the EV industry comes at a time when TV sales are dwindling and the smartphone market is also getting saturated.
Read more: Tesla may launch budget EV in 2015
